A Deal for North L.A.’s Largest Industrial Lease of 2011
- Aug 19, 2011
August 19, 2011
By Nicholas Ziegler, News Editor
In the largest industrial-building lease this year in the Santa Clarita and San Fernando Valley area, Deluxe Media Management has taken a 229,450-square-foot lease in the Vista Business Park in Valencia, Calif., 30 miles north of Los Angeles. The deal was transacted by IDS Real Estate Group in conjunction with Jones Lang LaSalle, who represented Multi-Employer Property Trust, the landlord.
The deal, while not the largest in terms of dollar amount — leasing price approached $10 million, sources told Commercial Property Executive — is indicative of the types of deals happening in the L.A. area. A report by Jones Lang LaSalle indicated that net absorption in the industrial market there registered 8.6 million square feet of net absorption, the highest amount since 2006.
The Deluxe lease will include 12,500 feet of office space among the larger Vista Business Park’s 750,000 total square feet. The entire facility is a Class A, concrete tilt-up structure.
According to the report, although the L.A. market as a whole sits at the bottom of a property cycle, pockets have started to recover, with demand for Class A space providing much of the driver. And while negative impacts were felt due to the earthquake and tsunami in Japan in the form of increasaed commodity prices, container volumes through Los Angeles registed modest increases at the end of June 2011.